JP Morgan Comments on AT&T 4Q Smartphone Sales

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JP Morgan has published a research report on AT&T
T
after the company announced today that smartphone sales for the first two months of 4Q have exceeded six million. In the report, JP Morgan writes, "3Q11 upgrades were only 6.9%, the lowest in years (since 2005) due to anticipation of the iPhone refresh. With sales momentum continuing into December, typically the strongest month in 4Q11, we believe smartphone sales could be 9.5m, up from our 8.2m original estimate. We now look for 7.5m iPhone activations in the quarter and 6.4m iPhone sales, up from original estimate of 6.5m activations and 5.8m sales. We expect an 11.5% upgrade rate in the quarter, up from 10.5% previously. This drives our margin estimate down to 33.5% from 37.1% previously. Our 4Q11 EPS estimate falls to $0.45 from $0.51 previously." AT&T is currently trading down $0.14 from yesterday's $29.17 closing price.
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Posted In: Analyst ColorNewsRetail SalesIntraday UpdateAnalyst RatingsJP Morgan
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